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100% mortgage financing: what you need to know

Do you ever wonder if there is such a thing as 100per cent loan to value and if you’re eligible for it? Then, read on!

100per cent mortgage financing or 100per cent loan to value really exists. This means that borrowers do not have to pay any down payment as they’ll be allowed to borrow 100per cent of the property’s tag price. However, these deals are relatively few and far between.

Lending institutions and banks usually offer this deal only to existing borrowers or to their active clients who have savings or checking accounts with them. However, being eligible for this is much more difficult compared to when getting a regular mortgage. Borrowers must have outstanding credit score and show proofs that their earnings can cover the monthly repayments without any problem.

If you’re eligible for this type of mortgage, expect to get higher interest rate. This is because you’re borrowing much more money compared to other borrowers. Also, expect that you’ll most likely to be put under fixed rate rather than tracker or discounted mortgage.